Life Insurance & New Parents

Recently a business associate/friend was blessed with his first child.  I was fortunate enough to have daily discussions with him leading up to birth.  While I do not like to consider myself “old”, for the most part, most of my peer group have stopped having kids.  Hearing my friend talk about the good and bad times leading up to birth brought back memories.

The time leading up to the birth of your first child is both exhilarating and scary.  You are experiencing new things each and every day.  However, since this is the first time you have experienced such a monumental undertaking, you thoughts are inundated with thoughts and feelings of doubt.  “Will I be a good parent?”  “Will I provide for my family financially?” “How will I provide for my family?”  The list goes on and on.

The fact is, as a first-time parent, you have a different set of responsibilities.  As a young person/couple the last thing in the world you would think about is the need for life insurance.  When a person is in his / her twenty’s, there is a feeling of immortality that exists.  However, there is one constant in this life, you are going to face death at some point in time.

Now, as a new parent, you are not only responsible for yourself, you are now responsible for making sure that new little bundle of joy has a future.  Given that we will all face death, and that the loss of your income due to premature death could cripple you new family, life insurance should be the first thing you purchase once that little one is born.  Of course, you are thinking that you now have diapers, formula, clothes, and many other things that will add to your expenses, and that the last thing you need is something else to take your money.

I now ask you to think about all the extra expenses you and your family are faced with given your new addition!  Would those expenses stop if you passed away?  Are those expenses going to decrease at any point during the first 16-20 years of that baby’s life?  I hope that you answered both of those questions with a resounding “NO!”  Take it from a father of three, the expenses never decrease.

Life Insurance is that “ounce of prevention” that can make the difference between little Johnny or Julie having the future you dream he/she could have, and a life filled without a parent and/or hope.  While having some life insurance is better than having no life insurance, please do not make the mistake of just buying a life insurance policy.  The key to building that foundation of hope for your child is having the correct life insurance policy.

The most important aspect when purchasing a life insurance policy is to buy the right amount.  While there are many online resources that will help you determine the amount of life insurance a person needs, the best thing for you to do is consult a Professional Advisor.  Now, there exists a stereotype with regard to life insurance salespeople.  Many people feel the these professionals are only concerned with selling you most expensive policy they can.  This may be true of some, this is not the norm.

A professional advisor should be concerned with providing you the right amount of protection at a cost that is affordable.  The best way for you to purchase life insurance is to determine the amount of money you can afford to pay, then build a life insurance plan that will fit your budget.  If your budget allows you to purchase the amount of coverage you need fully in permanent coverage then do so.  If you budget allows you to purchase the amount of coverage you need partially in permanent and partially in term then do so.  If your budget only allows you to purchase the amount of coverage you need in Term, you guessed it, then do so.

There are many types of plans, and some “TV Experts” will tell you how any plan other than Term is wrong, I will tell you that any time you can afford to purchase permanent insurance, you should.  Think of the difference between Term and Permanent Coverage in this regard, Renting vs. Owning.  However, when prompted to tell someone what the very best type of life insurance coverage is, the truth is simple.  The very best type of coverage a person can own, is the one that is in force at the time of death!

Being a new parent is exciting.  Being a new parent is scary.  Buying life insurance to protect your family’s future is easy!  Don’t procrastinate, call an advisor today.

About The Author:  Jack Wingate is a Professional Insurance Advisor and Founder of ALLCHOICE Insurance.  For more information about Jack Wingate, ALLCHOICE Insurance, or protecting your family’s future with a properly structured life insurance plan, visit https://www.allchoiceinsurance.com

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